Suppose a family consisting of a father and a son plays a "Gambler's ruin" game for the Chinese New Year Eve. Each game consists of a sequence of plays. It starts with both son and father having 2 tokens, and one token is bet at each play. The game ends when either the son or the father collects all 4 tokens. At each play the probability for the father to win the token is 1-p. What should be the value of p in order for the father to enjoy the "house advantage" of 10% ?

Suppose a family consisting of a father and a son plays a "Gambler's ruin" game for the Chinese New Year Eve. Each game consists of a sequence of plays. It starts with both son and father having 2 tokens, and one token is bet at each play. The game ends when either the son or the father collects all 4 tokens. At each play the probability for the father to win the token is 1-p. What should be the value of p in order for the father to enjoy the "house advantage" of 10% ?

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter8: Sequences, Series, And Probability

Section8.7: Probability

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